The long run is a period of time, or a time frame, in which all resources are fixed. the level of output is fixed. the amount of all resources can be varied. the capacity of the production plant is fixed.

The long run is a period of time, or a time frame, in which all resources are fixed. the level of output is fixed. the amount of all resources can be varied. the capacity of the production plant is fixed.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The long run is a period of time, or a time frame, in which

all resources are fixed.

the level of output is fixed.

the amount of all resources can be varied.

the capacity of the production plant is fixed.

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Economic cost can best be defined as Multiple Choice any contractual obligation that results in a flow of money expenditures from an enterprise to resource suppliers. any contractual obligation to labor or material suppliers. a payment that must be made to obtain and retain the services of a resource. all costs exclusive of payments to fixed factors of production.
Businesses wanted to reduce their cost to the minimum without compromising the product quality and violating laws. The total fixed cost decreases if the output increases. Thus the business is left with the variable cost to manage. Notably, the concept of the economies of scale also works for the government, non-profit organizations and individuals. The entity becomes more efficient as it produces more output and reduces cost as a result. The organization can benefit from the economics of scale, consequently, the consumers enjoy lower prices, and the economy expands to increase more demand. For huge businesses, economies of scale provide a competitive advantage over small enterprises. There are two types of economies of scale. The cost that the management can control is internal, while the cause for the cost to decrease attributed to geographic location, government policies, and industry changes are externals. Typically the internal economy of scale is found in large businesses as a…
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Moving to another question will save this response. Quèstion 32 the vertical distance between average variable cost and average total cost represent average fixed cost marginal cost fixed cost explicit cost A Moving to another question will save this response.